SUPERCEDED

XIII.   Auto Expenses

If the car is owned by a legal entity or a self-employed individual (and recorded in the books of account), actual expense can be claimed. The same applies to rented cars.

For travel abroad, where the actual expense cannot be proved, the statutory allowance can be used.

Log books must be completed for all trips. The log records details of mileage, business purpose and other information.

Expense claims for employee's car, self-employed individual's car (not recorded in the books of account) and car used by self-employed individual free of charge (except employee's) are regulated by the special Act on Travel Reimbursements.

The employee must account to the employer for usage with details including mileage. This is usually done on a specially designed form and is completed for each separate trip.

The allowable reimbursement of an employee or for a car owned by the self-employed (but not recorded in the books of accounts) is usually set annually.

With respect to the car not recorded in the books of account, if the car was subject to self-employed individual's books of account or was acquired by the individual through a lease with a purchase option, the reimbursement cannot be claimed. The same applies to car used free of charge.